Chilean wine exports to China surged in the first quarter of the year as merchants look to the South American country for Australian wine substitutes.
According to data released by Customs Studies Department, not only wine trade between the two trading partners grew, Chilean overall exports to China in the first three months of 2021 rose 42.4% over the same period in 2020.
“In the particular case of trade with China, the first half of 2021 again shows that the Asian giant is today the cornerstone of Chilean foreign trade, so many of our control and inspection efforts are focused on import and export processes with this country,” National Director of Customs José Ignacio Palma was quoted as saying by local newspaper The Rio Times.
Chile’s wine exports to China from January to March as a result increased by 40.6%, though the department did not release exact value or volume.
Chilean wine enjoys zero import tariff as opposed to the usual 14%, thanks to the two countries’ Free Trade Agreement.
The south American country’s leading wine exporter Concha y Toro affirmed the positive growth trend in its Q1 report, and reported a 128% growth in China.
The wine group’s export volumes increased 40% in the first three months of the year, led by 128% uptick in China and another remarkable rise of 266% in South Korea, it reveals.
In China, the Chilean wine company has also taken a further step by adopting an integrated distribution model, which is expected to strengthen the positioning of our Premium portfolio in this market.
Chile emerged as one of the two clear winners along with France to absorb Australia’s wine market share in China, after China slapped over 218% punitive tariffs on the country for a period of five years.
Last year, Chile ranked as China’s third biggest wine supplier behind Australia and France but its ranking is expected to climb as Australia’s exports tumble due to the crippling tariffs.
In 2020, Chile exported 197 million euros worth of wines to China, a drop of 37% compared with 2019, based on available customs data as we have reported.